Singapore-Mercosur trade deal headed for Brazil Parliament vote soon, says President Lula

When in force, pact offers immediate tariff-free access to 25 per cent of products

- Kok Yufeng

Mr Luiz Inacio Lula da Silva who is the first Brazilian president to participate in the Asean summit, said Brazil and Asean have complementary and dynamic economies.

(PHOTO: EPA)

A free trade agreement inked in 2023 between Singapore and four South American nations will be submitted to the Brazilian Parliament “soon” so that it may come into effect, said Brazilian President Luiz Inacio Lula da Silva.

The trade deal with Argentina, Brazil, Paraguay and Uruguay - a group known by the Spanish acronym Mercosur - will offer immediate tariff-free access to about 25 per cent of products when the pact comes into force, and gradually eliminate import tariffs on about 96 per cent of products over 15 years.

“Our trade and the opportunities in our relationship span many sectors, including agribusiness, aviation and biofuels,’ Mr Lula said of Brazil-Singapore ties, in an exclusive email interview with The Straits Times to coincide with an official tour of Southeast Asia.

“Brazil is always open to negotiating new agreements with Singapore,” he said, noting that trade between the two countries has increased more than fourfold over 10 years to US$8.7 billion (S$iL3 billion).

“Embraer, the world’s third-largest aircraft manufacturer, already supplies commercial aircraft, and can provide military cargo planes to Singapore. Brazil also plays an important role in exporting animal protein to Singapore,” he added.

The English text of Singapore’s trade pact with Mercosur — the trade bloc’s first such deal with a Southeast Asian nation - was signed in December 2023.

According to the legal text, ratification can be completed bilaterally.

This means the respective parliaments of Brazil and Singapore may approve the deal without having to wait on the other Mercosur states.